Oil prices surge on Middle East clashes — ride the energy wave with Chevron and Exxon
Oil prices are climbing for the third day in a row as clashes between the US and Iran make a peace deal look less likely. At the same time, a new Federal Reserve report just confirmed that inflation is heating back up across the country, largely driven by rising energy costs.
Idea
When military conflicts threaten oil supplies, energy stocks usually get a boost as traders anticipate higher fuel prices. With the Federal Reserve admitting that energy costs are actively driving inflation higher, there is a strong fundamental tailwind for oil companies. Because oil has already been rising for three days, the trend is firmly established but still has room to run as long as the geopolitical tension continues. Buying companies that actually produce oil lets you profit directly from these rising prices.